Resonating with the electric vehicle boom, silicon carbide power devices are still in the early stages of development - what is the space for the development of the faucet?

Zhitong Finance APP was informed that Guotai Junan released a research report saying that silicon carbide brings performance advantages to devices due to material characteristics, directly hits the development pain points of the new energy industry, and will alleviate the "mileage anxiety" and "charging anxiety" of electric vehicles, and it is expected that the penetration rate of silicon carbide power devices will increase rapidly. The bank focuses on recommending Silicon Carbide IDM leader Sanan Optoelectronics (600703.SH), Silicon Carbide Conductive Substrate Enterprise Tony Electronics (603595.SH), Silicon Carbide Device Manufacturing/Design and Module Enterprise Star Semiconductor (603290.SH), China Resources Micro (688396.SH), Silan Micro (600460.SH) and Yangjie Technology (300373.SZ).

Guotai Junan's main views are as follows:

The characteristics of silicon carbide materials bring device performance advantages, directly hitting the development pain points of the new energy industry.

The performance advantages of silicon carbide power devices such as high voltage resistance, high temperature resistance, low loss and small size can meet the development needs of the new energy industry. The common development pain points in the new energy industry including electric vehicles, photovoltaics, wind power, UHV transmission, energy storage and other subdivisions are switching loss, conduction loss, thermal management, charging speed, etc. The performance advantages of silicon carbide power devices directly hit the development pain points of the new energy industry, ushering in the rapid development stage of downstream application demand to promote the development of upstream supply.

Electric vehicles and silicon carbide resonate in a welcoming atmosphere, and the penetration rate of silicon carbide accelerates.

The penetration rate of domestic new energy vehicles exceeded 10% in May 2021 and accelerated month by month. According to the data, the third generation of semiconductor power devices (including SiC and GaN) will account for about 6% of the market in 2021, of which the SiC power device market will account for about 5%. It is estimated that by 2026, the third-generation semiconductor-based power devices (including SiC and GaN) market accounted for 19%, of which the SiC power device market accounted for about 14%. Silicon carbide power device penetration rate and electric vehicle penetration rate ushered in a resonance, electric vehicles are the largest downstream market for silicon carbide power devices, silicon carbide power devices alleviate the "mileage anxiety" and "charging anxiety" of electric vehicles, and the growth of the two ushered in resonance.

Veteran silicon-based power companies compete with emerging players, and domestic companies still have a broad space for the pattern that has not yet been solidified.

There are many global players in the silicon carbide industry chain, including the veteran silicon-based power companies Infineon, Onsemi, Rohm, ST, etc., the emerging enterprises specializing in the field of silicon carbide, Cree, SICC, basic semiconductors, Zhongke Hanyun, etc., as well as the main car factory /Tier1 enterprises BYD, Bosch, Xinrui Technology, etc. Silicon carbide industry chain currently gathers traditional silicon-based giants, automotive industry chain giants and many cutting-edge players, and a large number of funds and investments have poured in, and the industry is booming on the one hand and facing strong market competition on the other hand. At present, the market share of silicon carbide-based power devices is about 5%, the industry is still in the early stage of development, and the relevant technology selection, process route, customer binding and electric vehicle pattern are far from being finalized, leaving enough space and time for domestic enterprises and emerging players to become bigger and stronger.

Risk warning: The penetration rate of electric vehicles has not increased as expected; Silicon carbide yield improvement was less than expected.